The Department of Transportation (DOT) has proposed a $220,000 civil penalty against Distrigas of Massachusetts Corp., which operates a liquefied natural gas (LNG) terminal in Everett, MA, for violations of security and safety standards.

The violations were discovered by the DOT’s Office of Pipeline Safety (OPS) during a routine biennial inspection of the Distrigas LNG facility last November. Inspectors found Distrigas had failed to train its employees and contract security personnel in security procedures that were established prior to the Sept. 11 terrorist attacks, according to the OPS. A follow-up inspection revealed that Distrigas had not taken steps to correct the oversight even as late as April 2002, it said, even though Distrigas had informed the agency that it had done so on Dec. 1 of last year.

OPS inspectors also found that Distrigas did not have adequate measures in place for corrosion-control monitoring and for training employees in operations, maintenance and fire protection, the agency noted. At the time of the inspection, “Distrigas could not produce a record to demonstrate the last time that an inspection for atmospheric corrosion was performed in the send-out area of the terminal,” according to the OPS June 17 notice to the company.

In addition to the civil penalty, Distrigas has been ordered to train all of its security personnel in proper security procedures. Distrigas also was directed to take specific corrective actions with respect to atmospheric corrosion control, and to ensure that appropriate employees receive refresher courses in operations, maintenance and fire protection.

Even before receiving the notice from OPS this week, Distrigas said it had taken action to correct the probable violations related to security training, and “is revising its procedures for monitoring corrosion.” It further noted that “at no time were any of the facilities, systems or personnel at a safety or security risk.” Since Sept. 11. “Distrigas has taken extraordinary steps to insure the continued safety and security of our facilities,” noted CEO Rick Grant in a prepared statement.

The company has 30 days in which to contest the allegations that were spelled out in the agency’s eight-page notice.

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